The German Mittelstand & GCCs

“Aren’t we too small for that?”

A common misunderstanding I hear from leaders of the German Mittelstand.


I've been giving presentations to groups of German business stakeholders on India’s Global Capability Centers (GCCs = in-house tech hubs) including the ecosystem, trends, opportunities they provide, and why they are different to traditional outsourcing models.

Here’s what I shared:

Market Entry, asset light
GCCs allow you to drive innovation for your core products globally, all while staying in full control, developing company culture, and access a globally leading technology ecosystem and the fastest growing major economy.

Extension, not replacement
GCCs are in-house units and extensions to your global organisation. Businesses have opened technology hubs in Berlin, London, or Silicon Valley for the same strategic reasons.

Size doesn’t matter
GCCs can be set up and run as efficient, lean organisations. 15-20 people team? Works, and a growth rate of over 100% in 5 years for companies with GCCs confirms that the Mittelstand started to take note that there is more than outsourcing.


Mohammed Faraz Khan, Soumya Shankar

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